Some points of interest from the management interview in this link:
- invested 1700 Crore, that CAPEX is going live this FY, and we are investing another 1500 Crore this FY which will go live next FY. With these CAPEXs coming in, the revenue should go up relatively faster than the other two businesses.
- Revenue FY 15-16 940 Crores.
- It is very difficult to pinpoint textile numbers because it depends a lot on the yarn prices, which fluctuates year or year, but broadly speaking these two CAPEXs which I just mentioned one which has gone live this year and one which will go live next year, these two put together should add something like 2500 to 3000 Crores to what is our already existing topline. So if we talk about FY 18-19 it would be 3000 plus 900 which is the current number.
From Annual report 2016:
The textile division reported a healthy performance as revenue grew by 26.55% from
725.40 crore in 2014-15 to918.02 crore in 2015-16. This superior performance was the result of a robust growth in sales volumes in the domestic market – by brands and through our retail channel. The Company’s focus on superior design creation and product development increased product acceptance in ‘Collection Sales’ in international markets which is expected to result in heartening volumes in the current year. In addition, the Company’s significant efforts in streamlining plant and business operations facilitated in strengthening the profitability of this division.
- From https://www.screener.in/company/SINTEX/ Current P/E is at 6.1, while the average P/E for the textile industry today stands between 12 to 13.
- As per management revenue for FY 18-19 is projected at 3900 cr.
Considering the above points, would it be fair to imagine that this stock could be valued at 6x (2x P/E expansion and 3x increase in EPS) in about 3 years?
Look forward hearing your thoughts. Thanks.